The stock market tumbled Thursday amid investors’ trade-war fear with President Trump set to announce new tariffs on high-tech imports from China.
The Dow Jones Industrial Average dove more than 400 points by mid-day, with the S&P 500 and Nasdaq also posting loses.
The downturn closely tracked developments in Washington, where President Trump’s personal lawyer John Dowd quit the president’s legal team for special counsel Robert Mueller’s Russia probe.
Mr. Trump is signing a memorandum Thursday cracking down on Beijing’s unfair trade practices and theft of U.S. intellectual property, including the tariffs and measures limiting Chinese ownership in U.S. technology firms.
It’s spurred fears of a trade war with America’s biggest trading partner.
Beijing has vowed to “take all necessary measures to resolutely defend its legitimate rights and interests” in response to the new tariffs.
China signaled it could strike back by cutting the amount of soybeans it imports from the U.S. China is the largest customer for U.S. soybeans.
“The markets should dislike the possibility of a trade war between United States and other countries,” Stephen Wood, chief market strategist for Russell Investments in New York told Reuters. “However, there’s a lot of negotiation taking place there. Suddenly we’re seeing smaller numbers and exemptions.”
The new tariffs on technology and intellectual property are expected to be worth about $60 billion, roughly the value of U.S. technology lost to China due to the country’s onerous trade rules.
The tariffs, which chiefly target information technology, consumer electronics and telecoms, follow through on Mr. Trump’s tough talk against China’s trade abuses that helped fuel his White House win.
The list of items subject to the tariff could also be expanded to include closing and shoes.
• S.A. Miller can be reached at smiller@washingtontimes.com.
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